GROUP 2

Capa, Eugene
Castaneda, Janine C.
Castillo, Jerald Dave F. LESSON III
Cobilo, Arjay D.
Colipano, Nathalie M.
Dando, Alyssa Mae NEW PRODUCT
Escorial, Joebert

DEVELOPMENT
PROCESS
 STEP 1:
IDEA
GENERATION
 STEP 2:
IDEA
SCREENING
 1. Development
Product Ideas
into Alternative
STEP 3: Ideas

CONCEPT &
DEVELOPMENT 2. Concept
Testing- Test the
TESTING Product
Concepts with
Groups

3. CHOOSE
THE BEST ONE
 PART ONE-
OVERALL:

STEP 4:
MARKETING TARGET
MARKET
STRATEGY
DEVELOPMENT MARKET
SHARE

PLANNED
PRODUCT SALES &
POSITIONING PROFIT
GOALS
 PART TWO-
SHORT TERM:

STEP 4:
MARKETING PRODUCT’S
STRATEGY PLANNED
PRICE
DEVELOPMENT
MARKETIN
G BUDGET
DISTRIBUTION
 PART THREE-
LONG TERM:

STEP 4:
MARKETING
STRATEGY
SALES &
DEVELOPMENT PROFIT GOALS

MARKETING
MIX STRATEGY
STEP 5:
BUSINESS BUSINESS ANALYSIS
ANALYSIS Review of Product Sales, costs
and profits projection to see if
they meet company objectives.
 STEP 6:
PRODUCT If No,
If Yes, Move to
DEVELOMENT Eliminate
Product! Product!
 STEP 7: CONTROLLED
TEST
MARKET MARKET
A few stores
TESTING that have
agreed carry
SIMULATED
TEST MARKET
Test in
evaluated STANDARD
shopping TEST
environment MARKETING
Full Marketing
campaign in a
small number of
Representatives
 STEP 8:
COMMERCIALIZATION

Introducing the
presentation
into the market
PRODUCT LIFE CYCLE: SALES LOW SALES

Introduction COSTS HIGH COST PER CUSTOMER

Stage
PROFITS NEGATIVE
MARKETING CREATE PRODUCT AWARENESS
OBJECTIVES AND TRIAL
PRODUCT OFFER A BASIC PRODUCT

PRICE USE COST-PLUS

DISTRIBUTION BUILD SELECTIVE DISTRIBUTION

BUILD PRODUCT AWARENESS AMONG

ADVERTISING EARLY ADOPTERS AND DEALERS
PRODUCT LIFE CYCLE: SALES RAPIDLY RISING SALES

Growth Stage COSTS AVERAGE COST PER CUSTOMER

PROFITS RISING PROFITS

MARKETING
OBJECTIVES MAXIMIZE MARKET SHARE
OFFER PRODUCT EXTENSIONS,
PRODUCT SERVICE, WARRANTY

PRICE PRICE TO PENETRATE MARKET

DISTRIBUTION BUILD INTENSIVE DISTRIBUTION

BUILD AWARENESS AND INTEREST IN

ADVERTISING THE MASS MARKET
PRODUCT LIFE CYCLE: SALES PEAK SALES

Maturity COSTS LOW COST PER CUSTOMER

Stage
PROFITS RISING PROFITS
MARKETING MAXIMIZE PROFIT WHILE DEFENDING
OBJECTIVES MARKET SHARE
PRODUCT DIVERSITY BRAND AND MODELS

PRICE TO MATCH OR BEST

PRICE COMPETITIONS
BUILD MORE INTENSITIVE
DISTRIBUTION DISTRIBUTION
STRESS BRAND DIFFERENCES AND
ADVERTISING BENEFITS
PRODUCT LIFE CYCLE: SALES DECLINING SALES

Decline COSTS LOW COST PER CUSTOMER

Stage
PROFITS DECLINING PROFITS
MARKETING REDUCE EXPENDITURES AND MILK
OBJECTIVES THE BRAND
PRODUCT PHASE OUT WEAK ITEMS

PRICE CUT PRICE

GO SELECTIVE: PHASE OUT

DISTRIBUTION UNPROFITABLE OUTLETS
REDUCE TO LEVEL NEEDED TO RETAIN
ADVERTISING HARD-CORE LOYAL CUSTOMERS
SUMMARY OF
LESSON III.
 GROUP 2
Capa, Eugene
Castaneda, Janine C.
Castillo, Jerald Dave F.
Cobilo, Arjay D.
Colipano, Nathalie M.
Dando, Alyssa Mae
Escorial, Joebert
THANK
YOU!